Few decades back buying a commercial property required 20% of down payment. And if you didn’t had money for down payment then not many banks used to entertain your mortgage application. But with the time this policy has changed, today you can buy a commercial property with just a down payment of 5%. But now there is need to understand that is zero down payments realistic?

• Seller financing: Suppose a property is evaluated of $50000. You can arrange a meeting with bank officials and discuss the interest rates, repayment plans, mode of payment and so on. And then bank is ready to finance you with $40000 leaving you with $10000 as a down payment. The solution to this can be a second mortgage of $10000 at a higher interest rate. So if you have a good credit report and willing to pay a little interest rate, the bank can finance your down payment and you can get the commercial property without paying a single penny.

• USDA rural development plan: Another way to buy your property with no down payment is by applying for USDA rural development plans. It provides 100% financing for your property. There are also some benefits of USDA as there is no cap on the purchase limit thus you can include the repair and improvement of the loan also. But the property should be in an area that comes under USDA rural development guidelines.

• Veteran affairs loans: It allows veterans to buy mortgages without any down payment. There is no requirement to meet all the guidelines set up by the United States Department of Veteran Affairs. People eligible for these loans are veterans, National Guard members, active duty personnel, and some surviving spouses. And to apply for this loan you need to have documented proof.

• Personal loans: This option is not recommended much for a commercial property investment. As in personal loan the interest rate goes high and it can be as high as 20%. It can be feasible for people who are paying high rents as with this loan they can buy their own property.

These are some of the options available if you are thinking to buy a commercial property without any down payment.